Current Price on 12th Apr 2013 = S$0.34
I am analyzing this trust because of its recent rights announcement. They have announced for a One-for-One rights at S$0.24 in order to raise funds for repayment of its debts.
Rickmer Maritime has been trading at a very low price-to-book ratio because of its debts which is at a very high level. It has debts which are due this year and is trying to extend it which therefore has this rights issue. Assuming that its rights are fully taken up, here are the statistics.
In my opinion, this looks like a high-risk, high return business trust. Its yield and NAV is something which cannot be matched by any other REITs and business trust. I am thinking of taking this risk and try to subscribe for additional units so as to lower my purchase price and therefore increase yield. But having an experience through K-REIT Asia (now Keppel REIT) where it is not fully subscribed and its price went below its rights price, (although it went up eventually) I think it will be pretty much the same for this as well.
I am parking some funds to see whether there is an opportunity to enter AFTER the rights exercise because there should be more clarity on the progress and whether it is successful or not.